Rambus Inc (RMBS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 77.57% | 76.35% | 78.56% | 75.34% | 77.43% |
| Operating profit margin | 33.32% | 16.92% | 7.40% | -17.88% | -44.00% |
| Pretax margin | 40.59% | -1.72% | 7.09% | -14.83% | -36.27% |
| Net profit margin | 72.41% | -3.15% | 5.58% | -16.43% | -37.77% |
The profitability ratios of Rambus Inc. show varying trends over the past five years.
1. Gross Profit Margin: Rambus has consistently maintained a high gross profit margin, ranging from 77.07% to 83.51%. This indicates that the company is effective in controlling its production costs and pricing strategies, resulting in a healthy margin on its sales.
2. Operating Profit Margin: The operating profit margin has shown improvement over the years, with a significant increase from negative figures in 2020 and 2019 to 19.84% in 2023. This implies that Rambus has become more efficient in managing its operating expenses and generating profits from its core business activities.
3. Pretax Margin: The pretax margin has also experienced a positive turnaround, moving from negative margins in 2020 and 2019 to 40.59% in 2023. This suggests that the company has been successful in reducing non-operating expenses and increasing its profitability before accounting for taxes.
4. Net Profit Margin: Rambus has shown a remarkable improvement in its net profit margin, shifting from negative margins in 2020 and 2019 to a high of 72.41% in 2023. This indicates that the company has effectively managed its overall expenses, including interest and taxes, to significantly boost its bottom line profitability.
Overall, Rambus Inc. has demonstrated a positive trend in its profitability ratios, reflecting enhanced efficiency in cost management and operational performance, leading to improved profitability and financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.21% | 7.60% | 1.97% | -3.52% | -7.48% |
| Return on assets (ROA) | 26.54% | -1.41% | 1.49% | -3.23% | -6.42% |
| Return on total capital | 18.17% | -0.76% | 3.94% | -2.45% | -6.47% |
| Return on equity (ROE) | 32.16% | -1.84% | 2.13% | -4.43% | -8.81% |
Rambus Inc.'s profitability ratios have shown significant fluctuations over the past five years.
Operating return on assets (Operating ROA) has ranged from a low of -3.34% in 2020 to a high of 7.91% in 2022. The ratio stood at 7.27% in 2023, indicating that the company generated 7.27 cents of operating income for every dollar of assets it owns.
Return on assets (ROA) has also varied widely, reaching a high of 26.54% in 2023 and a low of -6.75% in 2019. The positive ROA in recent years suggests that the company has been effectively utilizing its assets to generate profit.
Return on total capital has shown a similar pattern, with a peak of 10.14% in 2022 and a low of -7.88% in 2019. The ratio was 8.81% in 2023, indicating that Rambus Inc. generated 8.81 cents of profit for every dollar of total capital employed.
Return on equity (ROE) has also fluctuated, with a high of 32.16% in 2023 and a low of -9.31% in 2019. The positive ROE values in recent years suggest that the company has been able to generate a significant return for its shareholders.
Overall, while there have been fluctuations in profitability ratios over the years, the recent positive trends in ROA, ROE, and other ratios indicate that Rambus Inc. has been successful in improving its profitability and efficiency in utilizing its assets and capital to generate returns.